Tax planning
That $7,500 electric vehicle tax credit history could quickly be tougher to get. Below are 2 workarounds
Crucial Points The Inflation Reduction Act established producing specifications for new electric powered motor vehicles to be in a position to qualify for a $7,500 tax credit history. People policies kick in April 18. Fewer automobiles are probably to qualify for the tax crack for a period of time. Shoppers can get individual tax breaks […]
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The IRS ideas to tax some NFTs as collectibles — and the loaded would pay up to 28% on earnings
Important Details The IRS ideas to tax non-fungible tokens as collectibles, the company mentioned in a recognize Monday. Collectibles have a major lengthy-time period cash gains charge of 28%. Other belongings this sort of as shares and cryptocurrency typically have a highest 20% federal price. NFTs are digital property that grew in attractiveness in the […]
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Not all passports are developed equivalent. This is a listing of the most effective ones
The United Arab Emirates has the strongest passport in the planet, according to a new index. The state jumped from being tied for 32th location on previous year’s position to the No. 1 place, in accordance to new index by the tax and immigration consultancy Nomad Capitalist. The Emirati passport leapt up the list simply […]
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IRS unveils option allowing online responses to 9 of its notices. ‘A step in the right direction,’ says tax pro
Hoxton/Sam Edwards | Getty Images After kicking off tax season with customer service and technology upgrades, the IRS this week unveiled a new option allowing taxpayers to respond more easily to certain agency notices. The new feature lets taxpayers and professionals respond to nine notices online by digitally uploading requested documents, rather than responding by […]
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IRS commissioner nominee to ‘ensure that America’s highest earners comply with tax laws.’ Here are the key takeaways from Senate hearing
Senate Finance Committee Chairman Ron Wyden, D-Ore., questions IRS Commissioner Charles Rettig at a Senate Finance Committee hearing. Tom Williams | Pool | Reuters President Joe Biden’s nominee to lead the IRS answered questions during a Senate Finance Committee hearing this week, highlighting key issues from lawmakers on both sides of the aisle. Daniel Werfel, […]
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How to pay 0% capital gains taxes with a six-figure income in 2023
vitapix | E+ | Getty Images Planning to sell some investments this year? It’s less likely to affect your 2023 tax bill, experts say. Here’s why: The IRS made dozens of inflation adjustments for 2023, including the long-term capital gains brackets, applying to investments held for more than one year. This means you can have […]
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The IRS has issued nearly 8 million tax refunds. Here’s the average payment
Bill Oxford | E+ | Getty Images The tax season is underway, and the IRS has issued nearly 8 million refunds worth about $15.7 billion as of Feb. 3, the agency reported. The average refund amount was $1,963, down from last year’s payment of $2,201 at the same point in the filing season. Of course, […]
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House lawmakers relaunch the SALT caucus. Here’s what to know about the $10,000 deduction limit for state and local taxes
Rep. Bill Pascrell, D-N.J., speaks at a news conference announcing the state and local taxes caucus outside the Capitol on April 15, 2021. Sarah Silbiger | Bloomberg | Getty Images A group of bipartisan House representatives relaunched the SALT caucus last week, calling for relief from the $10,000 limit on the federal deduction for state […]
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Pre-tax vs. Roth 401(k): Deciding which to use for retirement is trickier than you think
Prathanchorruangsak | Istock | Getty Images Whether you’re starting a new job or updating retirement savings goals, you may need to choose between pre-tax or Roth 401(k) contributions — and the choice may be more complex than you think. While pre-tax 401(k) deposits offer an upfront tax break, the funds grow tax-deferred, meaning you’ll owe […]
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IRS: Residents of more than a dozen states do not need to report ‘special payments’ for welfare, disaster relief on their federal return
The IRS on Friday issued federal tax guidance for millions of Americans who received state rebates or payments in 2022. The announcement came about a week after the agency had urged those taxpayers to hold off on filing while it determined if the funds are taxable on federal returns. “The IRS has determined that in […]
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